My Loan Officer
  • Loading...

New American Focus:
Mortgage & Real Estate

New American Focus: Mortgage & Real Estate

Translating the complexity of the markets into a concise and easy to digest format. Watch videos, read blogs, and view key data on short and medium term trends impacting interest rates, so you can make the right decision for your situation.

Homebuyers Increasingly Worried About Rising Prices, Low Inventory

Woman using computer | Homebuyers Increasingly Worried About Rising Prices, Low Inventory

A report from Fannie Mae last month showed that people were feeling worse about their homebuying prospects than they ever had before. Unfortunately, it looks like things have gotten even worse since then.

According to Fannie Mae’s latest Home Purchase Sentiment Index, a view into how consumers feel about the housing market based on a national survey, the number of people who said that now is a “good time to buy a home” fell to a record low in June – breaking the record set the previous month.

The report showed that just 32% of survey respondents said that it was a good time to buy in June, three percentage points lower than the previous record low, set in May.

Conversely, 77% of those surveyed said that it was a good time to sell their home, which is up from 67% in the previous month and demonstrates how much of a seller’s market it is right now.

As for the reason why people’s sentiments towards the housing market are what they are, Fannie Mae Senior Vice President and Chief Economist Doug Duncan said that continually rising prices coupled with perpetually low inventory are driving concern high among prospective homebuyers.

“The HPSI remained flat this month, although its underlying buy and sell components continued to diverge, setting record positive and negative readings, respectively,” Duncan said.

“Consumers also continued to cite high home prices as the predominant reason for their ongoing and significant divergence in sentiment toward homebuying and home-selling conditions,” Duncan continued.

“While all surveyed segments have expressed greater negativity toward homebuying over the last few months, renters who say they are planning to buy a home in the next few years have demonstrated an even steeper decline in homebuying sentiment than homeowners,” Duncan added. “It’s likely that affordability concerns are more greatly affecting those who aspire to be first-time homeowners than other consumer segments who have already established homeownership.”

But it looks like that even home prices increases and fewer homes hitting the market won’t be enough to deter would-be buyers from trying to buy a home, at least according to Duncan.

“Despite the pessimism in homebuying conditions, we expect demand for housing to persist at an elevated level through the rest of the year,” Duncan said. “Mortgage rates remain not too far from their historical lows, and consumers are expressing even greater confidence about their household income and job situation compared to this time last year, when the pandemic had shut down wide swaths of the economy.”

Demand for New Homes Fell in June While it looks like homebuying may have picked up in June, new data shows that … Read »
New Home Construction Continues Rising, But So Do Prices There’s some good news on the new home front, as construction of new … Read »
Home Sales Still Projected to Rise in 2021 It appears that neither rising home prices nor a lack of available inventory can … Read »
Homebuying Heated Up in June The most recent pending home sales data from the National Association of … Read »

How low will your payment be?

Important Updates:  We have updated important provisions in our Terms of Use and Privacy Policy, including cookies and session recording. By using our site, you agree to our Terms of Use and acknowledge that you have read our Privacy Policy.  Click here for more information.